Stocks to invest in – 10 Most Stable Companies In The US



Stocks to invest in

Given all that can happen around the world such as interest rate hikes, economic recessions, and natural disasters, the future is not set in stone. A lot can happen that can cause profits at companies to go down. Competitors can appear. Supply can exceed demand. CEOs can make bad acquisitions. If company profits shrink, stock prices can shrink too. Given the unknowable nature of future profit streams, equities have proven more volatile than bonds in the past.

Yet while many equities are volatile, some companies are stabler than others. Those companies are what you might call ‘Warren Buffett‘ type corporations that have wide moats and strong balance sheets. Some like AT&T Inc. (NYSE:T), Johnson & Johnson (NYSE:JNJ), Procter & Gamble Co (NYSE:PG), and The Coca-Cola Co (NYSE:KO) have been around for a long time. Other companies, such as Kraft Heinz Co (NASDAQ:KHC), Mondelez International Inc (NASDAQ:MDLZ) and PepsiCo, Inc. (NYSE:PEP) have substantial goodwill with customer bases and operate in stable sectors. While the average consumer might postpone buying a big ticket item such as a car or washer during uncertain times, he/she will likely continue eating Oreo cookies and drinking Mountain Dew. Others such as  Verizon Communications Inc. (NYSE:VZ), Visa Inc (NYSE:V), and Mastercard Inc (NYSE:MA) have very substantial barriers to entry. Financial transaction networks have strong network effects while competitors to Verizon will need to spend tens of billions on spectrum licenses and infrastructure just to compete .

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Not surprisingly, all of the stable companies pay a dividend. Some such as AT&T Inc. (T)’s dividend (currently at 4.6%), outpace the dividend payouts of others in the pack. Many stable companies are Dividend Aristocrats, companies that have paid an increasing annual dividend for 25 consecutive years or more. Those include Procter & Gamble Co (PG), The Coca-Cola Co (KO), PepsiCo Inc. (PEP), and AT&T Inc. (T). Due to their more stable nature, the stocks of the said companies have generally been less volatile than the market, and in many instances have outperformed the market over time (and especially during recessions).

While buying stocks of stable companies isn’t a way to get rich fast, purchasing a basket of the stable companies’ shares has historically been a way to keep wealth and steadily add to it. With all that said, let’s take a closer look at the 10 most stable companies in the United States. For more reading on recession proof ideas, check out 11 Recession-Proof businesses you can start now.


Kraft Heinz Co (NASDAQ:KHC)

Kraft Heinz Co (NASDAQ:KHC) is a major conglomerate in the uber-stable consumer staples sector. Just some of the companies’ brands include JELL-O, Oscar Mayer, Lunchables, and Planters. The company and Oprah Winfrey recently announced a venture to create a line of healthy and nutritious foods for everyone. 10% of the profits of the venture will be given to charities to solve world hunger. Buffett’s Berkshire Hathaway owned over 325 million shares of Kraft Heinz Co (NASDAQ:KHC) at the end of September, good for 22.63% of the Oracle’s equity 13F portfolio at the time.

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